Finance and Credit

Foreign experience in air emissions taxation: Economic value and areas for reforming

Vol. 24, Iss. 5, MAY 2018

Received: 28 February 2018

Received in revised form: 28 March 2018

Accepted: 23 April 2018

Available online: 29 May 2018

Subject Heading: FISCAL SYSTEM

JEL Classification: E62, F18, F64, G18, H23

Pages: 1005-1015

Tyurina Yu.G. Orenburg State University, Orenburg, Russian Federation

Troyanskaya M.A. Orenburg State University, Orenburg, Russian Federation

Subject The article investigates foreign system of environmental taxation.
Objectives The study aims to review the economic importance of air emissions taxation in the foreign practice and consider the feasibility of reforming the air emissions taxation in various areas.
Methods The study draws on the monitoring of works devoted to environmental taxation, using the methods of logical and statistical analysis.
Results The study shows that environmental taxes do not fully cover the detrimental effects of emissions and rather perform regulatory functions than fiscal ones. The global experience demonstrates that revenues from environmental taxes form trust funds and are used exclusively for environmental protection program financing. The paper reviews possible reforms in environmental taxation.
Conclusions and Relevance There is a need to reform the environmental taxation. It is crucial to provide for authorized obligations of each participant in the Paris Agreement to reduce the emissions of carbon dioxide; to introduce a two-level carbon transport tax, taking into account the level of CO2 emissions and the type of fuel used; to link the amount of fines for environmental offenses with economic benefits and ecological damage; to introduce tax incentives and preferences for producers and users of highly effective green solutions.

Keywords: tax instruments, tax incentives, environmental taxation, environmental tax, reform


  1. Grüner E., Salu K., Oras K., Nõmmann T. Environmental taxes – economic instruments for environmental protection. Quarterly Bulletin of Statistics Estonia, 2009, vol. 3, pp. 16–21.
  2. Cordato R.E. The Polluter Pays Principle: A Proper Guide for Environmental Policy. Washington, Institute for Research on the Economics of Taxation, 2001. URL:
  3. Laijun Zhao, Jian Xue, Changmin Li. A bi-level model for transferable pollutant prices to mitigate China’s interprovincial air pollution control problem. Atmospheric Pollution Research, 2013, vol. 4, pp. 446–453. URL:
  4. Taylor D.D.J., Paiva S., Slocum A.H. An alternative to carbon taxes to finance renewable energy systems and offset hydrocarbon based greenhouse gas emissions. Sustainable Energy Technologies and Assessments, 2017, vol. 19, pp. 136–145. URL:
  5. Kropp A.E., Blokhin A.N. [Environmental transport ecology: Problems and solutions]. Tekhnologiya kolesnykh i gusenichnykh mashin = Technology of Wheeled and Tracked Machines, 2014, no. 1, pp. 20–24. (In Russ.)
  6. David P., Montag J. Taxing Car-produced Carbon Dioxide Emissions: Matching the Cure to the Disease. Procedia Economics and Finance, 2014, vol. 12, pp. 111–120. URL:
  7. Almodóvar M., Angulo E., Espinosa J.L., García-Ródenas R. A modeling framework for the estimation of optimal CO2 emission taxes for private transport. Procedia – Social and Behavioral Sciences, 2011, vol. 20, pp. 693–702. URL:
  8. Piciu G.C., Trică C.L. Assessing the Impact and Effectiveness of Environmental Taxes. Procedia Economics and Finance, 2012, vol. 3, pp. 728–733. URL:
  9. Kubarev M.S., Strovskii V.E., Peregon I.V. [Methodological approach to the estimation of ecological-economic effect of wastes application]. Izvestiya vysshikh uchebnykh zavedenii. Gornyi zhurnal = News of Higher Institutions. Mining Journal, 2017, no. 1, pp. 31–38. (In Russ.)
  10. Postolov V.D., Denisova E.V. [Region ecology as an indicator in regular environment evaluation]. Zemleustroistvo, kadastr i monitoring zemel' = Land Management, Land Monitoring and Cadaster, 2010, no. 2, pp. 60–62. (In Russ.)
  11. Sunil Gulia, S.M. Shiva Nagendra, Mukesh Khare, Isha Khanna. Urban air quality management – A review. Atmospheric Pollution Research, 2015, vol. 6, iss. 2, pp. 286–304. URL:
  12. Arigoni Ortiz R., Hunt A., Seroa da Motta R., MacKnight V. Morbidity costs associated with ambient air pollution exposure in Sao Paulo, Brazil. Atmospheric Pollution Research, 2011, vol. 2, iss. 4, pp. 520–529. URL:
  13. Golubeva A.S., Magaril E.R. [Economic stimulation to reduce vehicle CO2 emissions]. Vestnik UrFU. Seriya: Ekonomika i upravlenie = Bulletin of Ural Federal University. Series: Economics and Management, 2016, vol. 15, no. 3, pp. 359–381. (In Russ.)
  14. Kalacheva O.S., Taranova M.V. [Environmental fee as the main source of environmental measures]. Biznes. Obrazovanie. Pravo = Business. Education. Law, 2017, no. 1, pp. 179–182. (In Russ.)
  15. Wang B.E., Liu B.E., Niu H. et al. Impact of energy taxation on economy, environmental and public health quality. Journal of Environmental Management, 2018, vol. 206, pp. 85–92. URL:
  16. Zimmer A., Koch N. Fuel consumption dynamics in Europe: Tax reform implications for air pollution and carbon emissions. Transportation Research Part A: Policy and Practice, 2017, vol. 106(C), pp. 22–50. URL:
  17. Wang B., Liu L., Huang G.H. et al. Effects of carbon and environmental tax on power mix planning: A case study of Hebei Province, China. Energy, 2018, vol. 143(C), pp. 645–657. URL:
  18. Krenek A., Schratzenstaller M. Sustainability-oriented tax-based own resources for the European Union: A European carbon-based flight ticket tax. Empirica, 2017, vol. 44, iss. 4, pp. 665–686. URL:
  19. Li Z.-C., Peng Y.-T. Modeling the effects of vehicle emission taxes on residential location choices of different-income households. Transportation Research Part D: Transport and Environment, 2016, vol. 48(1), pp. 248–266. URL:

View all articles of issue


ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 24, Iss. 5
May 2018